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 the Day of Reckoning will come when millions of baby boomers reach the age where they have to take mandatory distributions from their IRAs as they find that the Investments they were counting on for their retirement their homes and their Iris full of mutual funds have actually lost value that the amount of stuff that they can buy from the proceeds if they sell their home is actually less than when they bought their home and as they realize that their dream of a comfortable retirement was just that a

dream all those Boomers will get scared and pull in their horns they will stop spending they will start selling off their assets and the greatest stock market crash in history will unfold as more and more Boomers panic and sell I believe this will also be accompanied by the greatest real estate crash the world has ever known this perfect storm of bankruptcies and foreclosures will cause the currency Supply to contract as the giant credit bubble pops and all those Big Spenders become big savers when people save their currency it stops

circulating the economic engine runs out of oil and the whole thing locks up this is every Central Banker's worst nightmare this is real deflation and the world's Central Bankers are about to discover the true scale of the horrors of a credit bubble implosion when this happens the Federal Reserve will once again send out its Armada of money bomb dropping helicopters but this time something will be different something will have gone horribly wrong the bombs will have been defused the FED

will try pumping the banking sector by buying up every kind of debt they can get their hands on but to no avail they will go to the Extraordinary Measures that they had said they were prepared to go to they will buy every mortgage mortgage-backed security and any other type of debt that panicky investors and banks are trying to sell but nothing good will come of it they will start buying stocks to buoy the stock market but retail sales will continue to plunge they will try broad-based tax cuts but

it won't jump start the economy they will work with foreign central banks to buy each other's debt but the global economy will continue to plummet people will finally see through the veil they will see what Dorothy the Scarecrow The Lion and the Tin Man saw that The Wizard of Oz is really just some Dopey old guy frantically pulling levers remember when we talked about how during World War One the Germans increased their currency Supply by 400 percent yet there was no price inflation because of

the Public's anxiety over the war and the uncertainty of their future imagine the anxiety 75 million baby boomers will feel as they approach retirement only to find their homes and their mutual funds are now worth next to nothing The Nest Egg ladies and gentlemen has just cracked when they get their tax rebates are they going to buy that new big screen TV and the latest cell phone I think not I think they're going to save every dime they can get their hands on j ust like in Germany during the war

but there will be a point at which a threshold is reached for each income class it will be different it will be the point where they feel that they've finally got enough saved for retirement for some it will be one hundred thousand dollars for others it will be one million dollars and for others still it will be 10 million dollars the FED knows there is a point where they'll finally feel safe enough to replace that aging computer and maybe get that new TV at this point the boys at the FED will

buy enough government debt to fund tax rebates for all the taxes in the previous year but still nobody will buy that new car the threshold the FED is looking for will not be reached then in not so quiet desperation the FED will say screw the helicopters send in the bombers and as the shadow of millions of stealth currency bombers darken the skies currency will Begin to Fall like rain in the desert as Joe six-pack and John Q get tax rebate checks in the mail for all the taxes they paid during their entire

lifetimes fear will be temporarily alleviated and some of that currency will come out of hiding just as in Weimar Germany prices will rise quickly and dramatically as all that stored up currency energy is released in a panic the FED will call back the bombers but it will be too late there's nothing they will be able to do to stop it now because the hyperinflation will have already begun the Dow will begin an invisible crash of epic proportions and gold prices will shoot to the Moon if you were wise enough to Moor your

boat in the safe harbors of gold and silver and other Commodities you will weather the storm it won't be pretty but at least you'll be safe at this point confidence in the currency will fall faster than it can be created cost of living increases for government employees and the costs of all government projects the subcontractors the labor the materials will all Skyrocket and each time more currency is created to pay for the increases the value of the currency will fall even faster in times like that governments have only

two choices shut down the government and all of its projects and services send everybody home without pay turn off the printing presses and wait for the free market system to discover price levels that account for the quantity of the currency in the supply or print the currency into Oblivion governments have always chosen the latter [Music] but the stored up energy of excess currency creation doesn't have to take place within the United States and it doesn't necessarily have to be in the

future in fact there is an abundance of stored up currency just waiting to be released right now as I mentioned earlier all the dollars we sent overseas to other countries to buy their goods and services are now sitting in their bank accounts just waiting to be spent eventually the world economy will lose faith in the U.S dollar and will want to dump it by buying up Goods and as all those dollars come flooding back into the U.S it will of course cause the prices of those goods and services to rise and could and probably

will trigger a scenario much like the one I have just finished describing throughout history economists have suffered from what I like to call this time syndrome this time they've become masters of the economic universe this time they've figured it out this time they've tamed the economy this time they've mastered the art of infinite currency amplification this time a fiat currency will work history gives this a probability of zero each time we sailed toward economic Doom the greatest Financial Minds in the

world were at the helm do you really think we should continue letting them steer the ship I think not it would be nice if we started listening to people that have been right rather than the people that have theories and it would be great if they would allow the free market to work but that's not the way it's going to happen the people that have the theories will continue to rule and we will vote for people that don't know what they're doing and so the best that we can do is try to

protect ourselves and even you know potentially benefit from government and Economist stupidity uh and so the way to do that is by learning as much as you can about what's happening and developing your own opinions on what is coming at you rather than being reactionary and you can do that by watching some of the bonus features just click the info button and we'll see you in the bonus feature and until next time until the next episode see you there thanks for watching but this is by no means the whole story if

you want the full story including my free online only chapters and companion videos there's a wealth of information at ggsr21.com thanks foreign